Why Report Rent Payments?
Good credit is the cornerstone of financial health.
Credit impacts many aspects of our lives, including where we live. Building credit requires time and consistency, paying monthly bills reliably and on time. Most renters do just that. Many dedicate around 40% of their monthly income to rent. Unfortunately, they get no credit for it, even if they have never missed a payment or paid late.
But all that is about to change. The major credit bureaus now accept rent payment history from landlords and include that history on the individual renter’s consumer credit report. That is a game-changer for tenants, who now can see improvement in their credit reports. That unlocks a multitude of savings and benefits, allowing access to the best financing rates and the best amenities. It is no wonder that 68% of renters surveyed would choose a landlord who reports rent payments.
Landlords Who Report Rent See Fewer Delinquencies
Traditionally, landlords have suffered more than other installment creditors when it comes to enforcing payment contracts. Unlike other businesses where a default is met with suspension of service, the rental industry is heavily regulated. To remove a tenant, a landlord must go through a long and costly legal process. Late payment fees, likewise, are prohibited or limited and are seldom enough to create a deterrent. For some tenants, late fees are comparable to cash advance fees, and they use the lease agreement like an open line of credit.
But landlords who report rent payments to a credit bureau have an advantage over tenants who might otherwise pay late. Tenants know that as easily as they can build credit each month, late or missing rent payments can tear it down. Those tenants soon may find themselves being passed over or paying more for housing and other necessities.
The landlords who report rent payments through Landlord Credit Bureau currently are enjoying a 36% decrease in delinquencies.
By virtue of managing more conscientious tenants, that also translates into fewer instances of property damage.
What is Landlord Credit Bureau?
Landlord Credit Bureau is a credit reporting agency that specializes in reporting rent payments. Through a partnership with Equifax, rent payment history provided to LCB each month is associated with the tenant’s consumer credit report. By providing a turnkey, user-friendly platform specially designed for landlords, LCB makes the process of reporting rent both seamless and affordable. LCB is committed to helping landlords minimize income loss while rewarding responsible tenants by assisting them in gaining the credit they deserve.
The Tenant Record
Along with building credit, tenants whose rent payment history is reported can earn a positive Tenant Record through Landlord Credit Bureau.
Until now, landlords have not been reporting rent payment history, whether that history is positive or negative. As a result, the best tenants who have paid on time every month have no advantage over tenants who have habitually paid late or missed rent payments. When it comes time to fill a vacancy, the new landlord cannot easily distinguish high-risk from low-risk rental applicants.
The Tenant Record provided by Landlord Credit Bureau demonstrates the tenant’s payment history. Tenants can share this positive information with the next landlord to improve the chances of securing preferred housing options.